The aggressive revision of interest rates by Reserve Bank of India, its eleventh upward hike since March 2010, could give an unintended boost to a fledgling business the central bank has never been enthusiastic about; Islamic banking.
With interest rates threatening to go beyond the reach of the common man, the interest-free Islamic banks in the state are attempting to position themselves as an alternative source of finance. “Under the existing system, a customer is forced to bear a cost for which he is not responsible,’’ says Tanvir Mohidheen, the Chief Operating Officer of Alternative Investments and Credit Limited (AICL), a Shariat-compliant entity..............................................Full Article: Source